Inversion is a practice, which involves the merging of a US firm with a firm in another country that has a lower tax rate. It has been a rage in the corporate world all through this year.

However, the Treasury Department announced on Monday, September 22, that it will undertake measures and restrictions to make this less attractive, reports say. The restrictions imposed will make it tough for the US company to avoid paying US tax on any existing foreign earnings. This will remove the benefits of the hopscotch loans as per the US Department of Treasury.